ONGC offers 5-year Nandasan gas contract

Vol 19, PW 11 (11 Feb 16) Midstream & Downstream
     

Gujarat Gas, Adani Gas and local ceramics factories are among those expected to bid for up to 19,000 cm/d of gas from the Nandasan field at ONGC's Mehsana asset in north Gujarat.

A Notice Inviting Tender (NIT) dated February 2 has been greeted warmly by gas retailers and gas customers alike. Supplies will be available for five years until 2021 with the bid deadline set for April 6.

ONGC will open bids the same day at its Mehsana head office and select whoever quotes the highest premium over the government-fixed reserve gas price of $3.82/mmbtu Gross Calorific Value (GCV). Nandasan gas will be supplied on a ‘fall back basis’ as and when available, reports ONGC.

“We’ll do our best to supply the gas quantities projected,” he says. “Generally the range will be within 10% of the indicated quantity (19,000 cm/d).

” Anyone can bid, with no priority for strategic industries such as fertilisers or power. “Old and new companies are welcome,” adds ONGC.

When contacted an Adani source said: “If 19,000 cm/d of gas is available for five years at 11,480 kcal/cubic metre calorific value then it makes good business sense.” Gujarat Gas is also interested in Nandasan gas as it completes the final stages of taking full management control of Sabarmati Gas and its established retail gas network in Mehsana.